Securities Haldco Limited, the parent company of the 11 businesses that comprised the Banksia Financial Group, is 60 per cent owned by some of Banksia's top owners and executives, including its founder Patrick Godfrey and chairman Peter Keating.

In late October, investors learned that the non-bank lender had collapsed, taking with it hundreds of millions of dollars.

Receivers McGrathNicol took charge of Banksia on October 25 and froze the $660 million in investments from about 3000 mum-and-dad investors. All interest payments were stopped as it began an urgent review of the company's accounts.

Receiver Tony McGrath told News Limited that "in addition to its loan book, Banksia Securities Limited has other assets, including this loan to Securities Haldco Limited".

"As part of the receivership we are investigating how this loan may be collected and we are in dialogue with Securities Haldco in that regard," he said.

The loan was reportedly part of the company's normal business operations and it was understood receiver McGrathNicol did not uncover evidence pointing to illegal activity.

It was understood that Banksia investors Banksia Securities investors would receive some of their investment in the failed non-bank lender but would have nervous wait to find how much would be returned to them.

Last week, investors were told they would get between 10¢ and 15¢ from every dollar they invested in the non-bank lender before Christmas, with more payments expected after more assets are sold.

Information sessions for debenture holders were to be held in Ballarat and Shepparton on December 14, receivers McGrathNicol confirmed. People who hold debentures from Banksia Securities would receive a report on Banksia's activities and major assets as well as information on the timing and size of future payments.

BusinessDay, with Lucy Battersby

This story was found at: http://www.theage.com.au/business/banksia-shifted-11m-to-parent-before-collapse-20121121-29r7k.html